How small, local businesses can weather the economic storm while preserving their appeal
It is known that small, local businesses are more vulnerable to economic pressures during times of economic turbulence. The current inflation storm is not only impacting individuals and households, but it is also a threat to small and medium-sized enterprises (SMEs), begging the question of:
What can such businesses do to persevere through this economic crisis and emerge out of the better end of it?
It is no small feat, and it is definitely a challenging one, but we are here to guide you through it. Keep reading to find out more about how small, local businesses can battle the current economic storm without compromising their appeal.
Economic downturn and small businesses
The current cost-of-living crisis is one of the worst economic turmoils that the UK has faced since the 1950s. With soaring inflation rates and an economy (and society) that only just managed to survive the COVID-19 pandemic, the future is certainly troubling for small businesses.
In fact, 92% of small business owners are concerned about the current economic climate affecting their business, with 63% concerned about energy and rent prices, and 58% also concerned about decreased conversion rates due to consumers not spending.
These figures show that small business owners are truly worried about the impact of the economic storm, which they have every right to be – fresh out of COVID lockdowns, and now this?
The small business landscape is not looking bright.
However, it doesn’t have to be bleak and weary – small, local businesses can weather through this storm, and we are going to tell you how to do it.
What can small, local businesses do during this time?
Although the common response to an economic downturn is to reduce (staff, assets, or otherwise), this may actually not be the most beneficial method to ensure a business’ survival and longevity.
Cash flow is extremely vital during this time, and whilst cutting wages or staff numbers may seem to improve cash flow for a while, this is not entirely advantageous in the long run. You must look at the bigger picture – and the bigger picture involves after the economic woes settle.
So, if you’ve reduced your staff and their wages, you might just find yourself with a low morale workforce that leads to low productivity and motivation.
Instead, you need to be thinking about ways to bring cash in – and one way is to sell your products or services.
Advertising in the current economic climate
Small, local businesses have something that large companies often do not – local, independent, and unique appeal. Thus, it’s important that small businesses promote themselves whenever and wherever possible.
Whether that is through out-of-home (OOH) advertising, improved online presence (especially through social media), or even setting up an online storefront, your small, local business must adapt to the climate – a climate that calls for attention-grabbing ads.
Utilise cheap but effective forms of advertising that can get your business name spread from mouth to mouth, via tactics like guerrilla marketing, street advertising, even posters and storefront signage. Social media is particularly useful during this time for generating leads and driving traffic to your website (plus, it’s free…).